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Businesses split over effectiveness of the Budget

Businesses split over effectiveness of the Budget

Category: Business

Updated: 30/03/2011
First Published: 29/03/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Businesses are split over the effectiveness of last week's Budget, with many saying it will make no real difference to their day-to-day operations.

Almost half of small firms (45%) said it would have no impact on their business, while just under a third (31%) said the Budget would be positive for their prospects, according to the Federation of Small Businesses (FSB).

Four in 10 (42%) members said that they would be no worse off - but crucially no better off - as a result of the actions taken by the Chancellor.

And, of the third of members that think they will be better off, half (54%) claim they will get a £1 to £1,000 boost to cash-flow next year.

A third (39%) of those surveyed believed that the Budget would have a positive impact on the economy, compared to only 18% who believed it would have a negative impact.

"The Budget was pro-business and we are pleased that the Government has listened to some of our concerns and has extended small business rate relief and scrapped the planned 1p rise in fuel duty and the escalator," said John Walker, national chairman of the FSB.

"But, as the results from the poll show, the Budget has not hurt small businesses, but it won't help them to grow either".

"While we welcome the introduction of Enterprise Zones across parts of the UK , the missing link in the Budget was measures to help all UK businesses to take on staff and grow their business".

If you run a business that stands to benefit from the changes made in the Budget, you may wish to consider opening or switching your business savings account.

An example of one of the best on the market is the Santander Business Reward Saver that pays:

  • 1.84% (variable) including a bonus if you only make one withdrawal in the first 12 months.
  • A higher rate of 2.00% (variable) including a bonus is available when you make no withdrawals in the first 12 months.
  • The account is well-tailored for smaller firms as it is only available to businesses with a turnover of less than £1 million.

For a selection of other business accounts, including products from Investec, Barclays and Lloyds, check the Best Buy tables.

Looking for the right Business account? Compare Business accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.